Over the past few years, Peter Thiel, a prominent venture capitalist with a net worth of $2.7 bln, spoke of the threat Bitcoin poses to fiat money and the financial freedom it grants to its users. Thiel, who appeared on the Economist’s Keynote interview, stated: “It becomes a threat to fiat money at a point where Bitcoin is encrypted in such a robust way that the tax authorities can’t break the encryption, can’t tell how much money you have, and what transactions you are doing.” Trump’s transition team involvement Currently, Thiel’s stance on Bitcoin is notable considering his involvement in President-elect Donald Trump’s transition team, establishing himself as a crucial member. He emphasizes that the decentralized nature of Bitcoin allows users and citizens of the U.S. to benefit from financial freedom and escape the monopoly of the government. More importantly, he notes that tax authorities will no longer be able to track the earnings and income of entrepreneurs, workers and other individuals that are forced to deal with extreme amounts of income taxes among others. Anonymity of Bitcoin Thiel believes that Bitcoin is anonymous and that authorities can’t tell how much money users have. Conceptually however, this statement is false. …